CEOs Resigning

Reports says that life insurance business is in a decline growth. But that is untrue based on our (Prudential) performance last year which recorded a 9% increase in New Business Premium. Regarding the RBC, we are in strong position as it was implemented few years back in our company.

While others are still walking, let us RUN.... Lets together achieve our dream!

Excerpt from The Star, 3rd April 2009.

Friday April 3, 2009

Insurance CEOs resigning

By DALJIT DHESI
Departure of 3 captains in less than 10 days could be a start to an exodus

PETALING JAYA: In less than 10 days, three insurance CEOs have resigned and more resignations and movements in the insurance industry are expected in the coming months.

According to sources, the three who resigned are Cliff Lee of Tahan Insurance Malaysia Bhd (who also resigned as chairman of the General Insurance Association of Malaysia or Piam), AXA Affin Life Assurance’s Vincent Kwo and Uni.Asia General Insurance Bhd’s Mohd Fauzi Yaakub.

Piam, in response to a StarBiz query, said Oriental Capital Insurance Bhd CEO Mohd Yusof Idris was appointed chairman of the association on Wednesday to succeed Lee whose resignation was effective the same day. Yusof was previously deputy chairman.

At this stage, their reasons for leaving the companies were still unclear and no successors had been identified, a source said.

The insurance industry has not been spared the impact of the global financial crisis. While the general insurance industry grew in 2008, in terms of gross written premiums, it is expected to be impacted this year.

Gross premiums for the industry (general) grew 8.37% to RM11.32bil in 2008 compared with RM10.45bil in 2007. New business premiums for life insurance experienced a negative growth of 6.2% last year to RM7.13bil from RM7.6bil in 2007.

According to sources, the insurance industry is also heading for consolidation in line with the risk-based capital framework, which came into effect in January.

A source said the spate of departures among CEOs could be due to them going for stronger capitalised companies and better remuneration.

Lee, who has more than 25 years’ experience in the insurance industry, was appointed Tahan Insurance CEO in January 2007. He was previously CEO and managing director of Ace Synergy Insurance Bhd.

At present, managing director Preim Singh is overseeing Tahan’s daily operations. Piam declined comment on Lee’s resignation as its chairman.

Idaman Unggul, the parent of Tahan, is in the midst of selling its entire stake in Tahan’s general insurance business, after hiving off its life business to AXA Affin Life a few years ago.

Kwo’s resignation came as a surprise to many as his close colleagues were unaware of his departure, sources added. He was appointed AXA Affin Life CEO when the company came into existence.

Kwo’s more than 20 years’ experience in the insurance industry include stints in various South-East Asian countries, in positions such as chief financial officer and CEO in a number of multinational insurers. Fauzi, who resigned last week, was appointed Uni.Asia General Insurance CEO last December. Prior to that, he was chief operating officer.